Lee College Financial Statements and Analysis

Lee College Financial Statements and epitome ACC380 ? Lee College Financial Statements and Analysis Lee College is a hole-and-corner(a) non-for-profit organization. Organizations such as this atomic number 18 not own or controlled by a political sympathies and no undivided or group of individuals hold a legally enforceable residual claim to the web assets of the organization. Since the activities of private not-for-profit organizations argon normally financed through voluntary contri aloneions, their fiscal statements are primarily think for the use of donors and potential donors. According to its pecuniary statements, Lee College appears to be efficiently utilizing its resources to fulfill its mission, rather than for investment firm-raising and administration. Lee Colleges financial statements are reflecting a program expense ratio of 79 percent, which is well above the erupt Business Bureaus recommended minimum ratio of 60 percent. Private not-for-profits r eport both current and long- precondition assets and liabilities and rate revenues and expenses using the accrual fanny of accounting (Copley, 2011, p. 302). Since these organizations do not report by fund, either excess of assets over liabilities is referred to as make assets rather than fund balance.

The Financial Accounting Standards venire (FASB) has identified three classes of simoleons assets which are permanently qualified, temporarily restricted, and unrestricted. Permanently restricted cabbage assets include resources such as artwork or place down which must be maintained in a certain way. Permanen t endowments would overly be an example of ! a permanently restricted concluding asset. Typically, these assets are to be restricted as long as the organization has custody. Temporarily restricted fire assets include net assets net assets restricted by donors, but are not permanently restricted net assets (Copley, 2011, p. G18). These assets whitethorn be restricted for purpose, plant acquisition, time, or even term endowment. Unrestricted net assets include all...If you want to get a full essay, couch it on our website: OrderCustomPaper.com

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